Securing adequate financing is a primary concern for most new businesses. Most people don’t personally possess all the resources it takes to get a business up and running, but as a business owner you’ll need to invest some of your own money. Putting your funds into a business venture helps prove your commitment to potential investors or other sources of financing.
 
Those sources include banks, the Small Business Administration (SBA) and private individuals. Be aware that many banks avoid new business loans as being too risky even when money is not tight. The SBA is usually eager to help new enterprises, but competition is keen for the SBA’s limited loan guaranty support. Before applying for financing, you need to carefully prepare a thorough, well-thought-out loan proposal. Write up detailed figures on the capital needed, and be sure to include a salary for yourself and sufficient funds to cover start-up costs. A bank or SBA representative will review your business plan to be sure it’s solid. Once you obtain a loan, you’ll probably have to provide updated financial statements on a regular basis. As long as your business is profitable and you’re making loan payments on time, you’ll probably have minimum contact with the bank or SBA. Short-term loans may require closer bank monitoring.
 
You may consider seeking private investors who wish to have an equity stake in your business. Relatives or friends may be potential investors. Keep in mind, however, that these people may, understandably, expect to have a say in how the business is run.